Explanation :
Company Law and Accounting Standards are two main sources of GAAP
Correct Answered :
Wrong Answered :
A
Company Law
B
Accounting Standards
C
Both A and B
D
None of these
Company Law and Accounting Standards are two main sources of GAAP
Correct Answered :
Wrong Answered :
A
International Financial Reporting Standards
B
International Financial Accounting Standards
C
International Accounting and Auditing Standards
D
International Risk Reporting Standards
International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent, and comparable around the world. IFRS are issued by the International Accounting Standards Board (IASB).
Correct Answered :
Wrong Answered :
A
Assets + liabilities = Equity
B
Assets -Liabilities =Equity
C
Assets -Receivable =Equity
D
Assets + Receivable =Equity
Shareholder equity = Assets – Liabilities
Correct Answered :
Wrong Answered :
A
Rs 0
B
Rs 5000
C
Rs 10000
D
Rs 15000
Rs 15000
Correct Answered :
Wrong Answered :
A
receivable
B
payable
C
bad debt
D
none of these
The Advance payments are recognized as Receivable.
Correct Answered :
Wrong Answered :
A
Patent rights
B
Inventory
C
Cash
D
Trade receivables
A current asset is an asset that a company holds and can be easily sold or consumed and further lead to the conversion of liquid cash.Types of Current Assets: Cash and cash equivalent Inventory Ongoing projects Pre-paid expenses Account receivable Marketable securities
Correct Answered :
Wrong Answered :
A
investments
B
Property
C
Patent rights
D
Inventory
A non-current asset is an asset that the company acquires or invests, but the value of that investment does not recur within an accounting year.List of Non-Current Assets: Property, plant and equipment:
Correct Answered :
Wrong Answered :
A
I only
B
II only
C
I & II Only
D
I , II and III
Every business requires assets to run its operations and such assets that help a business in maintaining its daily operations are called tangible assets.Tangible assets can be seen and felt and are also capable of being damaged by fire, natural disaster or any accident. The tangible assets have a clearly defined purchase value or acquisition cost.
Correct Answered :
Wrong Answered :
A
Rs 1,000
B
Rs 1,500
C
Rs 2,000
D
Rs 2,500
Rs 2,000
Correct Answered :
Wrong Answered :
A
Cost of an asset + Residual value
B
Cost of an asset – Residual value
C
Residual value – Cost of an asset
D
None of these
Depreciation is referred to as the reduction in the cost of a fixed asset in sequential order, due to wear and tear until the asset becomes obsolete.
Correct Answered :
Wrong Answered :
A
Amortization
B
Depletion
C
Going Concern
D
Residual Value
The process of allocating the cost of intangible assets to expense is called amortization, and companies almost always use the straight‐line method to amortize intangible assets.
Correct Answered :
Wrong Answered :
A
Amortization
B
Depletion
C
Going Concern
D
Residual Value
The process of recording consumption of natural resources is called deplition.
Correct Answered :
Wrong Answered :
A
Amortization
B
Depletion
C
Going Concern
D
Residual Value
The concept of going concern assumes that a business firm would continue to carry out its operations indefinitely.
Correct Answered :
Wrong Answered :
A
Purchase of Property
B
Purchase of Office equipment
C
Replacement of Vehcile
D
Repair of vehicle
Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to undertake new projects or investments by a company.
Correct Answered :
Wrong Answered :
A
Purchasing Office supplies
B
Hiring a new Employee
C
Paying interest on business loan
D
Receiving fee for services
A business transaction is an economic event with a third party that is recorded in an organizations accounting system. Such a transaction must be measurable in money.
Correct Answered :
Wrong Answered :
A
Directors
B
Employees
C
Shareholders
D
Managers
A company owned by the shareholders.
Correct Answered :
Wrong Answered :
A
Capital
B
Current Assets
C
Current Liabilities
D
Fixed Assets
Current Assets is the correct answer.
Correct Answered :
Wrong Answered :
A
Cash Book
B
Sales Day Book
C
Trial Balance
D
Journal Proper
The Cash Book is also a ledger in the sense that it serves the purpose of a Cash A/c also. When a Cash Book is prepared, no separate Cash account is opened in the ledger. As such, the Cash Book is a journal as well as a ledger and hence it may be called Journalised ledger.
Correct Answered :
Wrong Answered :
A
Nominal Account
B
Real Account
C
Personal Account
D
Artificial Personal Account q
Nominal Account
Correct Answered :
Wrong Answered :
A
Commission on purchases
B
Cost of repairs
C
Rent of factory
D
Wages paid for installation of machinery
Wages paid for installation of machinery
Correct Answered :
Wrong Answered :
A
Going Concern
B
Consistency
C
Accrual
D
Business Entity
Business Entity
Correct Answered :
Wrong Answered :
A
Examination of journal and ledger
B
Examination of vouchers related to assets
C
Examining the physical existence and valuation of assets
D
Calculation of value of assets
Examining the physical existence and valuation of assets
Correct Answered :
Wrong Answered :
A
Accrual accounting only
B
Cash accounting only
C
Both cash and accrual accounting
D
None of the above
Both cash and accrual accounting
Correct Answered :
Wrong Answered :
A
4.5 months
B
5.5 months
C
6.5 months
D
7.5 months
If a fixed amount is withdrawn on first day of every month of the calendar year, the interest on the total amount of drawings will be calculated for 6.5 months. Average period will be calculated as:- = Months left after first drawing + months left after last drawing = (12 + 1)/2 = 6.5 months
Correct Answered :
Wrong Answered :
A
Cash Account:
B
Receipts and Payment Account
C
Income and Expenditure Account
D
Profit and Loss Account
Income and Expenditure Account
Correct Answered :
Wrong Answered :
A
Profit and Loss Account
B
Trading Account and Balance Sheet
C
Balance Sheet Only
D
None of the above
Trading Account and Balance Sheet
Correct Answered :
Wrong Answered :
A
₹78000
B
₹ 82000
C
₹ 30000
D
₹ 92000
₹78000
Correct Answered :
Wrong Answered :
A
profit
B
net loss
C
loss
D
None of these
profit
Correct Answered :
Wrong Answered :
A
Salaries
B
Commission
C
Interest on Capital
D
All of the above
All of the above
Correct Answered :
Wrong Answered :
A
Debit side
B
Credit side
C
Both sides
D
None of the Above
Credit side
Correct Answered :
Wrong Answered :
A
Purchases account
B
Mr. X Account
C
Cash account
D
Sales account
Mr. X Account
Correct Answered :
Wrong Answered :
A
Discount received
B
Discount given
C
Discount allowed
D
Credit sales
Credit sales
Correct Answered :
Wrong Answered :
A
Single Entry
B
Financial Entry
C
Double Entry
D
Triple Entry
Double Entry
Correct Answered :
Wrong Answered :
A
Expense
B
Income
C
Liability
D
Asset
Expense
Correct Answered :
Wrong Answered :